DAI Depegs to Lifetime Lows as Stablecoin Rout Plagues Crypto
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As the market continues to digest the impact of the sudden collapse of tech-focused Silicon Valley Bank, days after Silvergate went into voluntary liquidation, algorithmic stablecoin DAI has been knocked off its peg and has hit an all-time low of 0.88 cents.
DAI is currently trading at $0.90 according to CoinGecko data.
DAI is an algorithmic stablecoin that is collateralized by holdings from MakerDAO which includes USDC. Traders are speculating that Circle, which issues USDC, has worse exposure to Silicon Valley Bank than the $3.3 of the $40 billion backing USDC it disclosed.
On-chain data from Dune shows that $563 million of DAI was burnt in the last 24 hours. In total, the stablecoin has a market cap of $4.9 billion.
Curve 3pool’s liquidity pool has also been hit as traders flee USDC. As of Saturday afternoon Hong Kong Time, the pool’s share of USDT has shrunk to less than 1.5%. Earlier this week it was split evenly between USDT, USDC, and DAI as is supposed to occur.
Meanwhile, Tron’s USDD has also been knocked off its peg and is down to $0.93. Tether remains pegged at $1.